"Plan sponsors and advisers will need further specific direction from IRS in order to navigate the new self-correction landscape.... [1] What comprises an 'eligible inadvertent failure' and the degree to which inadvertence relates to the criteria of pre-existing practices and procedure for proper plan administration? ... [2] What is meant by completing self-correction within a reasonable time after discovery of the error? ... [3] How closely must the proposed correction method conform to existing EPCRS correction methods, or otherwise conform to correction principles under the Code, in order to be eligible for self-correction?"  MORE >>

"The proposed guidance ... synthesizes (and updates the existing regulation to reflect) guidance previously found in Revenue Rulings, an IRS newsletter, and certain changes to the Internal Revenue Code, made during the last 35 years ... The proposed regulation would also generally clarify and extend what had been previously understood to be the deadline for 'zeroing out' forfeiture accounts under defined contribution plans."  MORE >>

12 pages. "This paper explores various governance models that are used by DC plan sponsors and explains the key players, common fiduciary and settlor decisions, and considerations that may help plan sponsors choose a governance model suitable for their organization."  MORE >>

"Most 401k plan sponsors ... don't have the time or expertise to administer their company's retirement plan. They need to hire professional experts to help them. If they skimp on fees, are they also skimping on the fiduciary protection those professionals are supposed to provide? ... [S]ome are asking if there's a point when fees might go too low. If we reach this point, what happens to the amount of service provided to 401k plan sponsors? And how close are we to reaching this threshold?"  MORE >>

"The industry has long struggled with determining when it is appropriate to share plan and participant data and what data to share in financial wellness services. The recently concluded SPARK/DCIIA research demonstrated that greater alignment is needed among all stakeholders to meet the demand of American workers for more help and advice on retirement savings and financial wellbeing."  MORE >>

"[P]lan adoption of auto-enrollment rose in 2022 to 85% ... [A]uto-enrollment continued to yield far higher participation rates: 86% in 2022, compared with just 37% for plans without auto-enrollment.... [T]he average combined employee deferral rate remained relatively flat in 2022, down just slightly from 8.5% in 2021 to 8.4% in 2022 ... Plan adoption of Roth contributions increased from 83% in 2021 to 87% in 2022."  MORE >>

"[Ric Edelman, founder of Edelman Financial Engines LLC] suggested reevaluating the 60/40 portfolio and investing in exponential technology.... 'The notion of 60% of your money in stocks, 40% bonds is gone, because we're going to live much longer,' Edelman said. 'You need to have 70/30 or 80/20. You need to do it for much older, because you're going to live so much longer.' "  MORE >>

"7% of US public pension plans had funded ratios of 50% or less. Only 12% had funded ratios of 100% or more.... [T]he average funded ratio for U.S. public pension plans was 77.89% in 2022, and collectively they had Total Accrued Liabilities of $6.369 trillion, and total Unfunded Liabilities of $1.445 trillion."  MORE >>

13 pages. "Information from this analysis provides insight on demographics, investment behaviors, and how plan design changes may have influenced participation and contribution behaviors. Finally, this analysis helps identify trends with participant usage of benefit options."  MORE >>

"Courts are making no effort to go beyond the arcane legal-versus-equitable test from the common law in England.... [Defendant's] Memorandum in support of the Emergency Motion to Certify Interlocutory Appeal in the Yale case ... does an excellent job in highlighting the significant prejudice to plan sponsors if unsophisticated juries will decide fiduciary imprudence cases.... Based on the inconsistent case law to date, most federal judges are unqualified to second-guess plan fiduciaries. But a panel of local citizens is definitely unqualified." [Vellali v. Yale Univ., No. 16-1345 (D. Conn. Mar. 17, 2023)]  MORE >>

"According to the authors ... SB 263 will protect consumers ... from potential abuse and exploitation ... by requiring producers to consider only the interests of the consumer in making a recommendation ... SB 263 will also ... [prohibit] insurance producers from receiving incentives beyond allowable commissions or fees (such as prizes, rent reimbursement, etc.) for their sales ... Rule of Thumb: The more the insurance industry freaks out about legislation the better it is for consumers."  MORE >>

"The 'Missing Trust Fund,' a result of paying excess benefits to early generations, provides a strong case for some general revenue financing. Workers would contribute the amount required in a funded system, and general revenues would compensate for the 'Missing Interest.' Thus, the historical burden would be distributed more broadly, but the sense that workers pay for their own benefits would remain."  MORE >>

"Victims of severe storms, straight-line winds and tornadoes in Oklahoma from April 19 to April 20, now have until August 31, to file various individual and business tax returns and make tax payments ... [I]ndividuals and households ... that reside or have a business in McClain and Pottawatomie counties qualify for tax relief."  MORE >>